don't hold your breath...

Good morning and welcome to another Top-Shelf Thursday! A quick little story on where Top-Shelf Thursday’s came from. I was working for a company and the other salesman and I would visit the State Store after work. He would be eyeing the cheap scotches on the bottom shelf and I would be deciding on one from the top-shelf. I was going for flavor. He was going after effect! Ha! And the beat goes on… This morning Five Man Electrical Band greets me with their 1971 hit, “Signs.”

I normally pen this blog very early in the morning, and I did the same yesterday. After publishing it, I had second thoughts that maybe I was being too hard on the metals or that more likely I was reading the signs incorrectly. Anyway, the blog was written, I had made my bed! As I watched spot prices move yesterday, I’m sorry to say that I think I was and am more right than wrong with my prognostication on precious metals. Last evening gold closed down $11.20, silver down $0.06, and platinum down $4.00. Only palladium was up $14.00 and has actually risen above the price of platinum. I’m wondering if I’ve ever seen platinum selling cheaper than palladium. I don’t think so. Another first! Wahoo!

In overseas trading this morning, we’ve had a slight rebound in prices. Gold is up $2 to $1,284.40, silver is up $0.04 to $16.77, and both platinum and palladium each rose $3.00 to $926 and $937 respectively.

So what do you think? Will precious metals catch a break today/this week and be allowed to climb to new heights? Well, here’s my thoughts on why I think we can expect PM spot prices to continue to descend. The biggest news being reported by most of the press this morning is concerning the GOP tax plan. Depending on what side of the political spectrum you fall on and where you get your news will make a difference on whether you think the plan is good or not good for the American worker. But, what all seem to agree on is that Wall Street sees the plan as a huge boost to American business. With that said, investment money will pour into stocks leaving little available for precious metals. So no, I see precious metal spot prices continuing to decline in the days ahead.

I was reading a Bloomberg article yesterday titled “We’re Reaching Peak Gold.” It’s interesting how mining executives from the World Gold Council who met recently for the annual Denver Gold Forum are saying that they expect production to significantly drop in the coming years and with all of the uncertainty in the world, it seems a very fertile ground for people to get into gold. That’s the kind of news I like! But folks, we know the banks and investment firms are real good at creating “paper gold” so don’t hold your breath. At least not yet.

Well, that’s it for today. Go out there and make a difference! See ya later…